Chief economist for IHS Global Insight, Howard Archer said “While the Bank of England data shows that mortgage approvals edged up in November, they remained at a very weak level and the modest increase does little to dilute the belief that house prices will remain under downward pressure in the early months of 2011 at least.

What it does suggest is that house prices are more likely to trend modestly downward rather than crash.”

Despite a steady increase in loan approvals for house purchase, it is clear that there is an 18.6% drop since the November 2009 peak of 59,019. 2010′s high of 48,019 is however substantially lower than the 70,000 – 80,000 level that has been consistence since 1993.

Despite disappointing those who already own their own homes, in particular recent owners who have little equity in their property the news is not all bad. Many prospective first-time buyers who have struggled to find a home they could afford are more likely to now find a sufficient lender.

Housing minister Grant Shapps has revealed his hopes for a small and gradual real-time fall in house prices in order to make the buying process less difficult for new buyers.

He added “the time has come for property to be seen as something to live in and not an investment.”

Contribute

Useful Links

About Us

FinanceNews.co.uk aims to become a one-stop shop for personal finance content, news and information in the UK. With news topics covering everything in the personal finance sector from bank accounts to credit cards, debt to savings, we have a dedicated team of authors and business people who aim to bring you the leading stories, information, reviews and comparisons from an independent and informative perspective. The Finance News Team